Global Market Highlight
DJIA decreased by -0.22% on Thursday (14/01) followed by S&P 500 (-0.38%) and Nasdaq (-0.12%). Stocks gave up gains and finished lower as investors awaited the details of President-elect Joe Biden's Covid-19 relief package. Meanwhile, the Labor Department reported that jobless claims rose to near 1 million last week as the pandemic continued to spur companies to shed workers. While, the number of Americans filing for first-time unemployment benefits last week rose to 965,000, the largest increase in claims since March. Moreover, the market will look forward to several data releases today, such as: 1) US Retail Sales; 2) US Michigan Consumer Sentiment; 3) UK GDP.
Domestic Update
• The Minister of Finance has extended the provision of tax incentives to taxpayers who are in the healthcare sector, including the pharmaceutical sector. This is intended to support the availability of Covid-19 virus vaccination equipment and is valid until June 30, 2021.
• Data from the Indonesian E-commerce Association (idEA) and We Are Social shows that online shopping in Indonesia has increased by 25% to 30%.
• Furthermore, there was an addition of 3,165 new Covid-19 cases in Jakarta yesterday.
Company News
1. ANTM IJ spent IDR6.49 billion for exploration activities in December 2020. The nickel exploration was carried out in the Pomalaa area as well as reviews of several areas that have exploration prospects. ANTM uses geological mapping methods, core sampling, core logging, single tube drilling, moisture content measurement and grid and re-measurement measurements (Emitennews). MNCS Comment: ANTM has a few exploration areas in Pomalaa, and one of them has a smelter operating. We hope the exploration will resulted in a wider reserve. Currently ANTM is trading at 68.57x/4.04x PE/PBV.
2. PTPP IJ successfully booked new contracts of IDR22.26 trillion in FY20. PTPP has set a new contract target of IDR30.1 trillion for FY21E or a growth of 35% from the FY20 achievement. PTPP capital expenditures of IDR6.2 trillion, or double from the previous year (Investor Daily). MNCS Comment: PTPP's new contract target could be realized if the tender which had been delayed due to the pandemic was continued. PTPP is currently trading at 361.52x/-2.32x PE/PBV.
3. WIKA IJ targets a net profit growth of IDR1.05 trillion in FY21E. WIKA is targeting new contracts worth IDR40.1 trillion FY21E or doubling the FY20 achievement. WIKA is targeting industrial line contracts worth IDR7.7 trillion, infrastructure and buildings amounting to IDR18.13 trillion. Meanwhile, the energy and power generation business lines amounted to IDR5.6 trillion and IDR2.4 trillion in property. For this reason, WIKA has budgeted capital expenditure of IDR3.05 trillion in FY21E (Emitennews). MNCS Comment: WIKA also has to improve to maintain cash flow, where in FY21F there are several bonds that have matured. WIKA is trading at the level of 285.49x/1.41x PE/PBV.
IHSG Updates
JCI fell by -0.11% to 6,428.32 on Thursday (14/01) although followed by net foreign buy reaching IDR2.97 trillion. JCI finally fell for the first time this year as domestic investors took profit on most of the sectors. We see that this is a healthy correction though seem a little bit flat, but this opportunity can be used to accumulate. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,059. We estimate JCI will move in the range of 6,350 – 6,460 while waiting for balance of trade and consumer confidence data release. Today's recommendation: BMRI, TKIM, WSBP, TINS.
Corporate Action
IPO: DGNS (IDR200/share)
RUPS: WEGE
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